Microsoft Shares Move Higher On Earnings Beat, CEO Says Company Is Platform Of Choice For 'Next Generation Of AI'

Microsoft Corp MSFT reported fiscal third-quarter results after the bell. Here’s a look at how the tech giant fared during the quarter, as well as what may be driving some of the action after hours. 

The Details: Microsoft said third-quarter revenue increased 7% year-over-year to $52.9 billion. The company’s top-line results beat consensus estimates of $51.02 billion, according to Benzinga Pro.

Productivity and Business Processes revenue was up 13%, Intelligent Cloud revenue was up 16% year-over-year, while Personal Computing revenue decreased 9%. 

Microsoft reported quarterly earnings of $2.45 per share, which beat estimates of $2.23 per share and was up 10% year-over-year.

Operating income was $22.4 billion, and net income was $18.3 billion, up 10% and 9%, respectively. 

The stock appears to be reacting positively to the earnings beat, as well as continued strong revenue growth. Investors will want to watch for guidance on the call. 

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“The world’s most advanced AI models are coming together with the world’s most universal user interface - natural language - to create a new era of computing,” said Satya Nadella, chairman and CEO of Microsoft.

“Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI.”

Microsoft will hold a conference call to discuss these results at 5:30 p.m. ET. The company said it will provide forward-looking guidance on the call. 

MSFT Price Action: Microsoft has a 52-week range of $213.46-$294.18. The stock traded down 2.25% on Tuesday ahead of the report.

Microsoft shares were up 4.79% after hours at $288.60, according to Benzinga Pro.

Photo: courtesy of Microsoft.